BILL ANALYSIS
Bill No: AB
2048
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Dean Florez, Chair
2007-2008 Regular Session
Staff Analysis
AB 2048 Author: Silva
As Amended: April 9, 2008
Hearing Date: June 24, 2008
Consultant: Chris Lindstrom
SUBJECT
Horse racing: harness or quarter horse races: out-of-state
or out-of-country.
DESCRIPTION
AB 2048 increases the amount of races a harness and quarter
horse racing association may import on live racing days
from six to eight races. Specifically, this bill:
1)Increases the amount of races a harness and quarter horse
racing association may import (out-of-state or
out-of-country) on live racing days from six to eight
races.
2)Provides the harness or quarter horse association shall
get approval from the California Horse Racing Board
(CHRB) and the horsemen's organization contracting with
the association, as specified.
EXISTING LAW
Existing law authorizes the CHRB to regulate the various
forms of horse racing authorized in the state.
Existing law authorizes a licensed harness racing
association that is conducting a live racing meeting in
this state to accept wagers on the full card of races
conducted by another racing association on the day that
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other association conducts the Breeder's Crown Stakes, the
Meadowlands Pace, the Hambletonian, or the North American
Cup.
Existing law authorizes a licensed quarter horse racing
association that is conducting a live racing meeting in
this state to accept wagers on races conducted by the
racing association that conducts the American Quarter Horse
Racing Challenge, if the races are conducted on the same
day as the American Quarter Horse Racing Challenge.
Existing law provides CHRB is authorized to permit a
harness or quarter horse association conducting a race
meeting to accept wagers on the results of out-of-state,
out-of-country, and sometimes other harness or quarter
horse races, if specified conditions are met, including
that the association conducts at least seven live races and
imports not more than six races on live racing days, as
specified.
Existing law authorizes the inclusion of wagers in the
pari-mutuel pools of the out-of-state association that
conducts the races on which the wagers are placed.
Existing law authorizes thoroughbred racing associations or
fairs to distribute the audiovisual signal and accept
wagers on the results of certain out-of-state and
international thoroughbred races during the calendar period
the association or fair is conducting live racing,
including days on which there is no live racing being
conducted by the association or fair.
Existing law limits the number of races that may be
imported by associations and fairs to no more than 23 races
per day on days when live thoroughbred or fair racing is
being conducted in this state, with specified exceptions.
Existing law exempts from that 23-race per day limit races
imported that are part of the race card of certain
prominent races, including the Kentucky Derby, the Kentucky
Oaks, the Preakness Stakes, the Belmont Stakes, the Jockey
Club Gold Cup, the Breeders' Cup, or the Haskell
Invitational.
BACKGROUND
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Purpose of the bill. According to the sponsor of this
bill, Los Alamitos Quarter Racing Association, the revenues
derived from this bill will help to support the breeding,
owning and racing of California harness and Quarter Horses
and supplement the existing breeding incentive programs.
Background. Under existing law, there is a limit on the
number of imported races that can be simulcast for wagering
purposes by licensed harness and Quarter Horse racing
associations. This bill, if enacted, would allow a harness
or Quarter Horse racing association to increase the amount
of races each association may import on live racing days
from six to eight races. These additional races will give
more flexibility in scheduling simulcast races, while not
exceeding the cap on the number or simulcast races
statutorily permitted to take place each year.
In the late 1990's, California racetracks began importing
additional races from out-of-state locations to provide
California's horse racing patrons with the opportunity to
wager on quality races offered by racetracks throughout the
country. Since the introduction of this practice (which,
incidentally is authorized in many other states that
likewise allow parimutuel wagering on horse races),
wagering on these out-of-state races has been well received
by the betting patron, as evidenced by modest increases in
overall wagering activity. This has also helped the
industry offset a continued reduction in on-track wagering
activity.
PRIOR/RELATED LEGISLATION
AB 3074 (Governmental Organization), 2007-2008 Legislative
Session . Authorizes CHRB to permit a California harness
racing association conducting a live racing meeting to
accept wagers on the full card of races conducted by
another racing association on the day that other
association conducts the Kentucky Futurity. (In this
Committee on June 24, 2008)
SB 1635 (Negrete McLeod), 2007-2008 Legislative Session .
Changes the total number of thoroughbred races authorized
to be imported by thoroughbred associations or fairs on a
statewide basis to 40 per day. (In Assembly Governmental
Organization on June 25, 2008)
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AB 1736 (Governmental Organization), Chapter 444, Statutes
of 2007 . Adds the Travers Stakes to the group of specific
stake races which are exempt from the 23-race per day limit
on imported races, as specified.
SB 379 (Denham), Chapter 443, Statutes of 2007 . Adds the
Dubai World Cup race to a specified list of races that
would be exempted from the 23 race per day limit on
imported races for satellite wagering in California.
SB 2035 (Karnette), Chapter 268, Statutes of 2002 . Allows
a harness or Quarter Horse racing association to "bank" up
to two out-of-state or out-of-county imported races on a
specific race day, and then add those races to another race
day's importation schedule.
SB 590 (Perata), Chapter 936, Statutes of 2001 . Authorizes
thoroughbred racing associations and fairs in the northern
racing zone to increase the number of imported racing
simulcasts available to be wagered upon if the reduces the
number of live racing days.
SB 1183 (Margett), Chapter 232, Statutes of 2004 .
Authorizes a harness racing association that is conducting
a live race meeting to accept wagers on the full card of
races conducted by another racing association on the day
the other racing association conducts the Breeder's Crown
Stakes, the Meadowlands Pace, the Hambletonian or the North
American Cup.
AB 509 (J. Horton), Chapter 235, Statutes of 2004 . Allows
a thoroughbred or fair association to distribute the
audiovisual signal and accept wagers on the results of
out-of-country thoroughbred races during the calendar
period the association or fair is conducting a race meeting
under specified conditions.
SUPPORT: (As of June 20, 2008)
Los Alamitos Race Course
OPPOSE: (As of June 20, 2008)
None on file.
FISCAL COMMITTEE: Senate Appropriations Committee
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